Bill Text: MN SF92 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Public utilities excess interim rates interest return
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2013-03-18 - Second reading [SF92 Detail]
Download: Minnesota-2013-SF92-Engrossed.html
1.2relating to public utilities; revising process and standard for approval of interim
1.3rates;amending Minnesota Statutes 2012, section 216B.16, subdivision 3.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 216B.16, subdivision 3, is amended to read:
1.6 Subd. 3. Interim rate. (a) Notwithstanding any order of suspension of a proposed
1.7increase in rates, the commission shall order an interim rate schedule into effect not later
1.8than 60 days after the initial filing date. The commission shall order the interim rate
1.9schedule ex parte without a public hearing. Notwithstanding the provisions of sections
1.10216.25
,
216B.27 , and
216B.52 , no interim rate schedule ordered by the commission
1.11pursuant to this subdivision shall be subject to an application for a rehearing or an appeal
1.12to a court until the commission has rendered its final determination.
1.13(b) Unless the commission finds that exigent circumstances exist, the interim rate
1.14schedule shall be calculated using the proposed test year cost of capital, rate base, and
1.15expenses, except that it shall include: (1) a rate of return on common equity for the utility
1.16equal to that authorized by the commission in the utility's most recent rate proceeding; (2)
1.17rate base or expense items the same in nature and kind as those allowed by a currently
1.18effective order of the commission in the utility's most recent rate proceeding; and (3) no
1.19change in the existing rate design. In the case of a utility which has not been subject to a
1.20prior commission determination, the commission shall base the interim rate schedule on
1.21its most recent determination concerning a similar utility.
1.22(c) If, at the time of its final determination, the commission finds that the interim
1.23rates are in excess of the rates in the final determination, the commission shall order the
1.24utility to refund the excess amount collected under the interim rate schedule, including
2.1interest on it which shall be at therate of interest determined by the commission average
2.2prime interest rate plus two percent, unless the commission determines a different rate is in
2.3the public interest. The utility shall commence distribution of the refund to its customers
2.4within 120 days of the final order, not subject to rehearing or appeal. If, at the time of its
2.5final determination, the commission finds that the interim rates are less than the rates in
2.6the final determination, the commission shall prescribe a method by which the utility will
2.7recover the difference in revenues between the date of the final determination and the date
2.8the new rate schedules are put into effect. In addition, when an extension is granted for
2.9settlement discussions under subdivision 1a, the commission shall allow the utility to also
2.10recover the difference in revenues for a length of time equal to the length of the extension.
2.11(d) If the public utility fails to make refunds within the period of time prescribed
2.12by the commission, the commission shall sue therefor and may recover on behalf of all
2.13persons entitled to a refund. In addition to the amount of the refund and interest due,
2.14the commission shall be entitled to recover reasonable attorney's fees, court costs and
2.15estimated cost of administering the distribution of the refund to persons entitled to it. No
2.16suit under this subdivision shall be maintained unless instituted within two years after the
2.17end of the period of time prescribed by the commission for repayment of refunds.
2.18(e) The commission shall not order an interim rate schedule in a general rate case
2.19into effect as provided by this subdivision until at least four months after it has made a
2.20final determination concerning any previously filed change of the rate schedule or the
2.21change has otherwise become effective under subdivision 2, unless:
2.22(1) the commission finds that a four-month delay would unreasonably burden the
2.23utility, its customers, or its shareholders and that an earlier imposition of interim rates
2.24is therefore necessary; or
2.25(2) the utility files a second general rate case at least 12 months after it has filed a
2.26previous general rate case for which the commission has extended the suspension period
2.27under subdivision 2.
1.3rates;amending Minnesota Statutes 2012, section 216B.16, subdivision 3.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 216B.16, subdivision 3, is amended to read:
1.6 Subd. 3. Interim rate. (a) Notwithstanding any order of suspension of a proposed
1.7increase in rates, the commission shall order an interim rate schedule into effect not later
1.8than 60 days after the initial filing date. The commission shall order the interim rate
1.9schedule ex parte without a public hearing. Notwithstanding the provisions of sections
1.11pursuant to this subdivision shall be subject to an application for a rehearing or an appeal
1.12to a court until the commission has rendered its final determination.
1.13(b) Unless the commission finds that exigent circumstances exist, the interim rate
1.14schedule shall be calculated using the proposed test year cost of capital, rate base, and
1.15expenses, except that it shall include: (1) a rate of return on common equity for the utility
1.16equal to that authorized by the commission in the utility's most recent rate proceeding; (2)
1.17rate base or expense items the same in nature and kind as those allowed by a currently
1.18effective order of the commission in the utility's most recent rate proceeding; and (3) no
1.19change in the existing rate design. In the case of a utility which has not been subject to a
1.20prior commission determination, the commission shall base the interim rate schedule on
1.21its most recent determination concerning a similar utility.
1.22(c) If, at the time of its final determination, the commission finds that the interim
1.23rates are in excess of the rates in the final determination, the commission shall order the
1.24utility to refund the excess amount collected under the interim rate schedule, including
2.1interest on it which shall be at the
2.2prime interest rate plus two percent, unless the commission determines a different rate is in
2.3the public interest. The utility shall commence distribution of the refund to its customers
2.4within 120 days of the final order, not subject to rehearing or appeal. If, at the time of its
2.5final determination, the commission finds that the interim rates are less than the rates in
2.6the final determination, the commission shall prescribe a method by which the utility will
2.7recover the difference in revenues between the date of the final determination and the date
2.8the new rate schedules are put into effect. In addition, when an extension is granted for
2.9settlement discussions under subdivision 1a, the commission shall allow the utility to also
2.10recover the difference in revenues for a length of time equal to the length of the extension.
2.11(d) If the public utility fails to make refunds within the period of time prescribed
2.12by the commission, the commission shall sue therefor and may recover on behalf of all
2.13persons entitled to a refund. In addition to the amount of the refund and interest due,
2.14the commission shall be entitled to recover reasonable attorney's fees, court costs and
2.15estimated cost of administering the distribution of the refund to persons entitled to it. No
2.16suit under this subdivision shall be maintained unless instituted within two years after the
2.17end of the period of time prescribed by the commission for repayment of refunds.
2.18(e) The commission shall not order an interim rate schedule in a general rate case
2.19into effect as provided by this subdivision until at least four months after it has made a
2.20final determination concerning any previously filed change of the rate schedule or the
2.21change has otherwise become effective under subdivision 2, unless:
2.22(1) the commission finds that a four-month delay would unreasonably burden the
2.23utility, its customers, or its shareholders and that an earlier imposition of interim rates
2.24is therefore necessary; or
2.25(2) the utility files a second general rate case at least 12 months after it has filed a
2.26previous general rate case for which the commission has extended the suspension period
2.27under subdivision 2.
